If the market for a product is narrowly defined, then there are likely to be many substitutes for the product and the demand for the product is relatively elastic.

Question

Quizplus · Accepted Answer

When the market for a product is narrowly defined, there are likely to be many substitutes available for the product which means consumers can easily switch to other substitutes if the price of the product increases. This makes the demand for the product relatively elastic.

If the Market for a Product Is Narrowly Defined, Then